Apostle Art Home Staging & Design Blog

                                                                  Yea...I bought a house today!

And I'd like to share with you Some Key points to consider when purchasing an investment property.

Investors come in all different shapes and sizes. Some buy and sell for a fast profit, some are Landlords, some purchase a second home as an investment for retirement and some like to rehab. My husband and I fall into the last category as we love transforming the "ugly duckling" of the neighborhood into the prized swan. There is a great amount of pride when you take property that is abused, worn down, rejected and just plain sad looking and turn it into a beautiful home for would be buyers.

While we may not be considered seasoned investors, we are smart investors and have turned a good profit in areas where the properties of "seasoned" investors are left sitting for months and even years burning deep holes in their bank accounts.

So...what do we do that is different? What is our key to success with our investment properties? Here are a few Key elements to our strategy.

• Do your homework!! Before you even begin to embark on purchasing an investment property to rehab... Do Your homework!! We work with a fantastic agent who we keep close by to answer any questions we have about a particular area, how many homes have sold there, what is the average selling price etc... The more informed you are, the better chance you have to realize a good profit. If you don't  do your homework properly...you may fail the class and be seriously held back financially.

• See tons of properties before you decide which one to go for. How will you know you are getting a good deal if you don't know your options. I have always been the kind of shopper that needs to go down every aisle before I make a purchase. I want to see it all so I will know I have choosen the best.

• Don't get your heart set on one particular property. Remember that you are buying an investment property, not one you are going to live in yourself. We put offers in on 2 other houses that we were sure we would get only to find that other investors had swooped up from no where and won them. Naturally, we were disappointed but as it turns out the house we ended up buying was far better.

• Look for properties that have everything! I am not talking in-ground swimming pools here but in this competitive market it is important to consider what most buyers want. It doesn't matter how good a job you do rehabbing a property, if it is missing key elements buyers will keep looking. These are some things we look for...  Garage,  Big Bedrooms , Nicely situated on lot, Decent looking homes around, Open layout, light and airy...no dungeons!! You would hate to get the feedback..."We loved the house but there was no dishwasher!"...or "no Garage"...or "The bedrooms were too small!" Try to give buyers everything they are looking for so there is no reason for then not to buy.

• Consider what could be changed and at what cost. If a house doesn't have everything, consider what you could add within your budget. For example... While my husband actually hates to use the dishwasher and almost always washes by hand, we would never sell a house without one. If a home doesn't have an existing dishwasher, it is fairly easy to remove one of the cabinets and have one installed and is well worth the small investment. It is important though to weigh the cost versus the value.

• Crunch those numbers!!!! Before we decide to place an offer on a house, we really sit down and crunch those numbers. We ALWAYS overestimate the cost of improvements and leave a "buffer" amount to cover any unexpected costs. You must allow for closing costs on both ends, holding cost, insurance, etc. We then look at what we could realistically get for the house once done and in the current market and we always figure on the lower end. By doing this we are planning for the worse case and see if there is still enough profit to make it all worth it. If so, we go for it! In the end, all being well, we tend to come out way ahead of our conservative calculations!

 So, Hopefully that gives some newbie investors... and perhaps some "seasoned" ones... some good starting points when considering investing in a property to rehab.

Stay tuned as I will follow this up with some tips for actually rehabbing the property once you get it, and how to get it sold FASTER and for MORE MONEY!!!                            

~Apostle Art Home Staging & Design offers professional real estate staging services to sellers, real estate agents and investors in the Pocono Mountains Region and beyond. www.apostleart.com ~

If you are selling your home or are a Real Estate Agent with Vacant or Occupied listing located in North Eastern Pennsylvania, The Pocono Mountains, Greater Stroudsburg Area and beyond...Please call us now so we can bring life to your listing and get you results with our Professional Home Staging Services...570-972-7939.